Common Online Security Concerns for Credit Card Processing

All retailers, whether online or offline, have some common security concerns involving their credit card processing, but online transactions still have higher security risks than in-person credit card transactions. The security issues deal with the safety of both your business and your consumers financial data. Currently, credit card processing security online relies on two main systems; the “AVS” and “CVV” numbers. Both of these systems allow consumers to enter their credit card details online with higher levels of protection if retailers require both forms of information from their customers when accepting credit cards as payments.

The “CVV”: Card Verification Value

On the back of a consumer’s credit card is a three or four digit number, known as the card verification value. The number is not found on a credit card statement, which means that an individual asked to enter the CVV when making a payment would have to have the card in his or her possession, and not just a credit card statement found in the trash. Many types of identity fraud and fraudulent credit card purchases are prevented by requiring the card verification value to process the credit cards, because most online credit card fraud is the result of an individual stealing a thrown-away card statement or receipt.

If an incorrect CVV is entered during the check out process, the credit card is declined and the owner of the card is protected against fraudulent purchases.

The “AVS”: Address Verification Service

Another method to reduce credit card fraud and improve online security for credit card processing is through the use of the AVS – Address Verification Service. This security measure checks that the address a customer enters into the order form when trying to pay for a purchase with a credit card matches the billing address associated with that credit card.

Unlike the CVV process, the address verification is not a required step for customers to place an order. It is up to you as the retailer to decide whether or not you will require an address entered by a shopper match the address associated with the credit card account. When a customer enters address details, your credit card processor will send you an email to show you whether the address matches the billing address of the card.

If an address is entered that does not match the address associated with the credit card account, the purchase is not automatically denied as is the case with an incorrect CVV number. Instead, it is left up to the retailer to decide if they want to process the sale as-is, or require the buyer provide additional information or re-enter the address to see it matches – to ensure they are the owner of the credit card before the transaction is completed.